ALUMRISE

John Challenger, CEO of Challenger, Gray & Christmas

Last week, I was invited by a thoughtful outplacement industry leader, to attend a breakfast to hear some data and insights about today’s talent economy.

Over some scrambled eggs and fruit, I had the chance to hear from research firm Birkman about the results of a multi-year leadership/talent survey and to also hear from John Challenger, the CEO of venerable outplacement firm Challenger Gray & Christmas. Mr Challenger shared some personal hiring landscape insights and observations. (If you have not had a chance to hear Mr. Challenger speak or read one of his columns, I highly recommend it.)

With many today wondering what the hiring future holds, I wanted to share the morning’s key themes with members of our ALUMRISER network - which today includes both C-Level executives as well as many experienced middle managers seeking new opportunities. At the end of this post, I’ll also share some personal take-aways and implications.

Another One Bites the Dust: The landscape is changing – and it will take time to return to traditional hiring patterns

• Many companies are freezing salaries, or even taking across-the-board salary cuts — in some cases up to 30-50%; Others are mandating strategies like a 4-day workweek. The silver lining to the extreme moves? They are in most cases alternatives to layoffs — and designed to keep valued talent close. Midsize companies are more likely to use these tactics today, possibly because they are more lean and more dependent on key talent inside their ranks
• In contrast, large companies are actively considering severances; in fact, up to 67% of leaders at large enterprises (>5,000 employees) surveyed by Birkman, suggested they would use job cuts as a cost strategy in 2009. (The full White Paper results can be downloaded here – select “Business Implications of the New Reality.”)
• A “second wave” of impacts will now affect industries outside financial services & automobiles – impacted will be retail, technology, electronics, semiconductor and wireless among others

Jack be Nimble: Executives and line managers alike must think differently about job search

• It’s time to consider opportunities that would once have been off-limits, such as part time or “audition” positions if you are an experienced business person – the market may not support quick re-entry into a full time position 
• It’s an era that Mr. Challenger describes as one of “no fault job loss” which means companies will be quick to cut, so the ability to move across industry lines will be ever more important
• The willingness to cross-over by marketing functional skills and fungible talents will be a key to success in this economy; seek positions in sectors and geographies where hiring is still happening (apparently discount retail and hospitality and consumer goods as areas that may weather better, in addition to core healthcare and education)
• Titles that will be particularly affected by layoffs are professional support and middle management. Those roles of a more senior level; those of a more technical nature or in sales are less likely to be hit, reported Birkman as part of their survey results

I Heard It Through the Grapevine (Online): Job loyalty is being replaced by a free agent mentality, so both talent and companies will have to foster “outside the employment door” relationships using technology as an enabler

• For talent, retaining connections to former employers is a key way to renew and revive career opportunities – using either formal or informal alumni or career networks
• For companies, investing in long-term talent relationships is a key driver of longer-term success, as they are forced to swing employment patterns based on larger, uncontrollable macro-trends leading to job cuts and rehires- Challenger specifically recommends building privileged relationships that retain flexible connection using online community and networking formats

Are you an ALUMRISER?

ALUMRISERS - My take-aways and implications:

1. Don’t over-think opportunities – be open to a variety of job contracts including part time or temporary as well as newly engineered positions – ALUMRISE understands that today you are competing with millions of other job-hunters as well as a growing stream of income-seekers returning to the workforce to support displaced family members – so look hard at each and every message of interest. Your profile helps position you for a variety of types of interest – job, project, mentor/coach, board, etc. So get into action/contribute and meanwhile, enjoy the time life has given you back, either in your job hunt or after-hours in a (hopefully) less intense position that allows time for self-reflection.

2. Look hard at your functional skills & understand exactly which your fungible or transferable skills are. ALUMRISE can do this for you – by answering the few simple questions that create your profile you are in essence creating a ‘functional resume’ making it easier for you to found for a transfer between industries or sectors … your experience tells the tale for you to hiring mangers and recruiters within an ALUMRISE profile

3. Understand companies you’d wish to work for, and try to develop access to their existing networks or online networks they create. ALUMRISE is building private platforms for companies to stay connected to former talent that live inside the broader ALUMRISE Universe .. Once a member of ALUMRISE you can request to join relevant networks related to your experience and skills … Stay tuned for more on that.